AMD share of x86 market hits new peak

SAN JOSE, Calif.  Advanced Micro Devices took its largest slice ever of the x86 market in the last quarter of 2006, according to a report released Wednesday (Jan. 31) from a PC market researcher. AMD grabbed 25.3 percent of the x86 unit sales in the forth quarter, according to Mercury Research (Cave Creek, Ariz.).

"Intel has had lower shares than this, but this is the lowest since
late 1995. Prior to 1995 their share has been much lower," said Dean McCarron, principal of Mercury Research.

AMD gained slightly more than two percent share in both desktops and notebooks in the quarter. However, Intel gained slightly more than one percent in server share in the period, McCarron said.

AMD's gains came from first time design wins in servers, notebooks and desktops from Dell and servers from Gateway. The company also got more design wins from IBM, HP and Sun, AMD reported.

The usual boost in consumer PC buying at the end of the year also helped AMD, said McCarron. "AMD's mix is more consumer than Intel's, hence they gain disproportionately," he added.

Nevertheless, Wall Street analysts hammered AMD when it reported a loss in its last quarter and revealed that a heated price war with Intel put pressure on its business.